Just in time for the rain! The manufacturing tax rate will be reduced from 16% to 13% in 2019

The reduction of the current tax rate of the manufacturing industry is a substantial profit transfer to the real economy, which will enable more enterprises to embark on the battle with light weight< On Marc5, at the national two sessions, Premier Li Keqiang said in his government work report that a larger scale of tax reduction will be implemented in 2019, including inclusive tax reduction and structural tax reduction, focusing on reducing the tax burden of manufacturing industry and small and micro enterprises. 1n terms of tax reduction and fee reduction, we will further deepen the reform of value-added tax, reduce the current 16% tax rate of manufacturing and other industries to 13%, and the current 10% tax rate of transportation and construction to 9%, so as to ensure that the tax burden of major industries will be significantly reduced and the tax rate of 6% will remain unchanged. However, we will take supporting measures such as increasing tax deduction for production and living services, To ensure that the tax burden of all industries will only be reduced but not increased, we will continue to push forward three tax rates and two tax rates, and pay close attention to the implementation of the inclusive tax reduction policy for small and micro enterprises introduced at the beginning of the year< 1n fact, in the executive meeting of the State Council held in March 2018, the VAT rate of manufacturing and other industries has been clearly reduced from 17% to 16%, and the VAT rate of transportation, construction and other industries has been reduced from 11% to 10%. The readjustment of value-added tax also clarifies the determination and strength of the government to reduce the burden of enterprises and stimulate the vitality of the market in response, the people’s daily commented that the implementation of the big tax cut is a substantial transfer of profits to the real economy, which will enable more enterprises to go into battle with light weight. 1n 2018, the VAT rate will be reduced by 1 point, and the tax will be reduced by 179.4 billion yuan within 10 months; This time, the tax cut dividend will undoubtedly be multiplied according to this government work report, tax reduction and social security burden reduction can “reduce the burden of enterprise tax and social security payment by nearly 2 trillion yuan in the whole year”, which exceeds many people’s expectations, especially for manufacturing and other industries. This is a long-awaited timely rain the most direct effect of tax reduction is to improve the profit margin of enterprises. The manufacturing industry with the biggest tax reduction effort this time is a highly competitive industry, and its profit margin is already thin. 1n recent years, the biggest problem for many enterprises is: high cost, where to make profits? Even Lei Jun, deputy to the National People’s Congress, once bluntly said: “the comprehensive net profit margin of Xiaomi hardware does not exceed 5%”. 1n addition to financing cost, personnel cost, land cost and logistics cost, tax cost is one of them therefore, cost reduction constitutes one of the core connotations of “three elimination, one reduction and one compensation”. Since last year, how to reduce costs through substantial tax cuts for enterprises has been a major concern of the whole country. From the one point reduction of value-added tax rate last year, to the new tax reduction measures for small and micro enterprises determined at the beginning of this year, and to the release of major tax reduction measures of both inclusive tax reduction and structural tax reduction today, tax reduction measures have been frequently launched, which shows that the government’s reform commitment is steadily fulfilled, and the reform focus has been put on solving the actual problems of enterprises

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